TCS Share Price Sees Steep Fall as ₹5.56 Lakh Crore Market Cap Wiped Out

Market Performance

TCS share price has witnessed a dramatic decline, losing 34% from its August 2024 peak. The stock, which once touched an all-time high of ₹4,592 apiece, has now slumped to ₹3,045.

On August 4, 2025, the share price fell below the ₹3,000 mark for the first time since October 2022, touching ₹2,991.60 during intraday trade. This sharp decline makes TCS one of the worst-performing Tata Group stocks in the current year.

• 52-week high: ₹4,592 (August 2024)
• Current price: ₹3,045
• Fall from peak: 34%
• Market cap loss: ₹5.56 lakh crore

Main News

The ongoing downtrend in TCS share price has been triggered by multiple headwinds. The company's June quarter earnings missed expectations, leading to further selling pressure. Additionally, the IT giant announced plans to lay off 2% of its workforce—approximately 12,000 jobs—during the ongoing fiscal year.

External macroeconomic factors, especially in key markets like the US and Europe, have compounded the concerns. Donald Trump’s recent imposition of sweeping tariffs on major trade partners has led to uncertainty, impacting client budgets and project ramp-ups.

TCS also faced its second-biggest monthly drop of 2025 in July, with a 12% loss in share value. This trend has continued into early August.

Company Details

Tata Consultancy Services (TCS) is India's largest IT services company. It has long been considered a blue-chip investment, but the recent price erosion has raised concerns among investors.

One of the most significant impacts of the TCS share price fall has been on LIC (Life Insurance Corporation of India), a major stakeholder in the company. LIC held a 4.86% stake in TCS as of the June quarter, according to BSE data. The massive decline in share price has wiped out nearly ₹27,000 crore from LIC’s investment value.

Revenue

Despite macroeconomic concerns, TCS reported modest revenue growth in Q1 FY26.

• Revenue (YoY): ₹63,437 crore (up 1.3%)

The revenue growth, although positive, fell short of market expectations due to cautious client spending, especially in non-essential tech services.

Net Profits

TCS managed a slight improvement in profitability despite the challenging environment.

• Net Profit (YoY): ₹12,760 crore (up 5.9%)

This profit growth, however, did not help cushion the negative sentiment caused by job cuts and weak demand.

Summary of the Article

TCS share price has plummeted significantly, shedding 34% from its August 2024 peak. Weak quarterly results, global macroeconomic uncertainty, and job cuts have all contributed to the stock's decline. The slump has erased ₹5.56 lakh crore from its market value, deeply impacting major investors like LIC. While revenues and profits have shown marginal growth, the overall market sentiment remains negative due to global and internal challenges.